Member Info for mattlilly

To clarify certain speculation re NCM's/BHP's rights...

"While there is no legislative threshold, it is relatively common for Boards of Australian listed companies to acquiesce to a shareholder's request to nominate a director to the Board where they hold 10-15% of the company’s voting power."

"shareholders with more than 10% of a company’s ordinary shares, or shares in a class, can block the compulsory acquisition by an acquirer of remaining (ie, not yet acquired) shares in the company or that class;"

"Australian law prohibits directors, including nominee directors, from using information that they have obtained in their capacity as a director to gain an advantage for themselves or someone else (including their appointing shareholder) or to cause detriment to the company. The obligation attaches to information obtained because a person is or was a director and continues after the director is no longer in office.
A director also owes a duty of confidentiality to the company. Ultimately, this duty of confidentiality overrides any obligation that a nominee director might otherwise owe to the major shareholder who appointed them to the board.
A nominee director must not disclose confidential information that they have obtained in their capacity as a nominee director to their appointer, unless there is a provision in the company’s constitution or in an agreement between the company and the appointing shareholder to the contrary, board consent or other special circumstances."

Colonel...are you saying the Ecuadorian Govt wouldn't sanction a bid from a company that was already in Ecuador...?

“Newcrest will not be participating in the raising...."

This is where it started...

"The rift between the management of SolGold and its two biggest shareholders, BHP and Newcrest, has widened after the copper junior's latest fundraising attempt prompted Newcrest to consider removing its representative from the SolGold board.

BHP and Newcrest collectively own close to 30 per cent of SolGold, but neither will participate in a surprise $US20 million ($28.8 million) fundraising announced by SolGold on Friday morning.

The raising comes less than a month after SolGold, which has no sustainable source of revenue, disappointed BHP and Newcrest by signing up to an eight month loan with interest rates of 12 per cent.

BHP and Newcrest have publicly urged SolGold directors to raise funds via equity, arguing that approach is in the best interests of existing shareholders.

The big miners have argued equity is a cheaper source fo funds for a company that is developing a long-dated and expensive mining project in a frontier jurisdiction, than debt or offtake deals.

SolGold appeared to have met those calls with Friday's opportunity to buy more shares at a discount of about 10 per cent to the closing price of SolGold's London shares on Thursday.

But neither big miner will participate amid concerns over SolGold's chaotic approach to financing.

“Newcrest will not be participating in the raising. We are disappointed with the approach that Solgold management has taken in respect to financing the company,'' said a Newcrest spokesman in a statement.

Friday's raising came with extensive legal footnotes, appendixes and disclaimers, which made clear that only a certain number of investors would be invited to participate.
Australian residents face legal restrictions if they want to participate, and participants cannot trade the new shares prior to October 10.

BHP will be liberated from a pre-existing standstill agreement that prevents it from buying more SolGold shares within a week of that October date.

Newcrest's block caving expert Craig Jones has served as the company's representative on the SolGold board, amid expectations that SolGold's flagship Alpala deposit will be a block cave if it is ever turned into a mine.

Newcrest indicated on Friday it may relieve Mr Jones of the fiduciary and legal responsibilities that come with being a director of SolGold.

''We are considering our position with respect to our representation on the Solgold board,” said a Newcrest spokesman.

The fact BHP and Newcrest will not participate despite publicly urging SolGold to raise funds via equity highlights the gulf that now exists between management of the copper developer and companies that control almost 30 per cent of its register.

That combined stake will almost certainly shrink through dilution in the wake of Friday's fundraising, which SolGold said created an opportunity to'' broaden the Company’s shareholder base through the introduction of new investors''."

The Premier League would be even better with Leeds United there...provided the supporters behave themselves...my scariest football experiences: on the Kop at Leeds and in the Shed at Millwall...

Well it wasn't for real was it...prerecorded...already out of date...shabby...must do better....

Good to see you on the call Phat...I also noticed the several mentions but I believe it was because they can't 'land' until 1 July....

But smart move to do the placing because Nick can race on drilling these highly prospective sites...

AIMHO as usual...

PS Congrats to Klopp but I'm one of the 'other' Reds...63 years...hence my moniker...

Snippets from Solgold presentation...

TBH it was pretty anodyne, delivered in Nick's characteristic monotone...

"A $550 million MCap makes us very vulnerable to an opportunistic takeover..."

"Craig Jones from Newcrest is on our Board..." No he's not! Given that the presentation was supposedly made 'earlier today', does that suggest the Newcrest resignation was a surprise?

Excruciating patronising reference to "the ladies of Solgold..."

"Solgold is in the process of bidding for Cornerstone...the alternatives to that bid are not dissuasive..." He doesn't sound confident of succeeding with the bid...

"Solgold has received 10 qualifying bids for the offtake of copper/gold/silver concentrate from Alpala. This points to a strong outcome in the generation of a near term development funding package..."

"The Franco Nevada deal equates to a $3 billion NPV as opposed to a $550 million market cap..."

"We have the opportunity of a $1 billion upfront financing based on a stream from a gold streaming company and we're working on debt deals with sovereign import and export credit agencies and that will provide hopefully $2 billion of the $2.7 billion that we need to develop this project..." BINGO!

"we are the most financeable copper gold porphyry project in the world..."

"We're on track to deliver the PFS study by end Q3, early Q4..." That's cutting it fine with BHP...

"DFS by the end of Q3 2021..." More slippage...

"there's more (regional) applications that are close to grant..."

"We have three other projects that we're drilling on and another 2 or three that we're working on to get the permits..."

"We have 5 or 6 projects that stand out and look even better than Alpala did...they look way better than Alpala did and we own 100%..." Now THAT is rocket fuel...

"Rio Amarillo has four different targets and the best of those has a litho cap on it that is better than Alpala..."

"At Porvenir we have outcrops that are twice the length and the same grade or better than Alpala..."

"These things (the 5/6 projects) all have outcrops and we don't need to drill them to define them..."

So in conclusion, this was a disgracefully low key presentation from a guy who keeps his company is massively undervalued!

However...it was worthwhile reminding us of the mind-blowing potential, with at least another 5/6 projects "at least as big as Alpala..."

My own conclusion...how on earth is he going to fend off a bid for what is truly a Tier 1 Major in the making and must be the most bankable, financeable, biddable company on the planet.

The challenge for would be bidders is, how long do you dare hold off your bids when SOLG is drilling on 'outcrops' on all these other 100% owned projects...

I can assure you all that, whatever happens to the SP I am holding LONG and STRONG!

Part 2
Nobody could be surprised at Newcrest withdrawing (they may in fact have been asked to leave but offered the chance to save face by resigning). In any case why would you want a major player and potential predator in the Board room when you're discussing bid defence strategies.

Furthermore, Mr Biswas didn't agree with NM's funding/financing strategy anyway, as he stated clearly in February:

hxxps://www.afr.com/companies/mining/newcrest-urges-solgold-to-avoid-short-term-funding-fix-20200213-p540hs

That article also implies that Newcrest may well have been a 'streaming' prospect and may have been miffed when Franco Nevada go the gig.

So how does all this play out..."should I stay or should I go..." (Newcrest).

BHP are clearly not there as a friend at court. We should be in no doubt that they are a potential predator, maybe as soon as October, hence the need to get the PFS out in September. They are also currently seeking to raise $1.5 million by selling out of coal mining...maybe also to raise a war chest?

But Nick has forced Newcrest's hand. Are they in for the long haul? Will they sell to the highest bidder? Or will they bid themselves?

We may get to know well before October, as this global game of 'chicken' plays out...the first mover will almost certainly NOT be the winner unless they go for a knockout bid. That would have to be of the order of 125p a share and would be a gamble on the value of the other 72 projects, as least one of which Nick has described as prospectively being even bigger than Alpala.

Nick is the ringmaster...he most know in his heart that SOLG cannot remain independent, except possibly until October. Of course he has to 'talk the talk' (and we will all hang on his ever word tonight), but he can retire a VERY rich man if he plays his cards right, without having to wait 7 years for the rewards, when he will be approaching 70, in a world where life has become far more precious in the last five months and CVD is booming in his home state...

So in conclusion, other things being equal, we should expect to see a growing stream of good news running up to September, starting with the Franco Nevada signoff...

Unless it is interrupted by "the company has received an approach which may lead to a bid..."

For the time being it is right to focus on Newcrest. SOLG no longer need their block caving expertise.

Sandeep Biswas' next move may well hold the key that unlocks our collective fortunes...

AIMHO as usual...

A rational perspective on Newcrest..."should I stay or should I go..."

SOLG has appointed Citi to advise on bid protection...NM wouldn't spend that money if that wasn't his greatest fear, so...

The focus of everything he does from now on will be twofold:

What maximises the value of the resource and the best prospects for funding the mine(s);

What minimises the risks of an unwanted bid. He cannot possibly prevent any major from bidding, including BHP after October, so he has to either make it as difficult as possible or do all he can to maximise the value of his portfolio of projects.

The current share price is irrelevant. Investors are driven by fear and the MMs unsurprisingly marked the price down today knowing there would be panicky holders who, for example, would worry that Necrest would dump their holding...

Yeah that's likely...not! Do they think Sandeep Biswas is that stupid, having come all this way?

Newcrest NEEDS new gold resources, because their current production is declining (Havieron and Cascabel) and also NEEDS cash, viz their fundraising in April:

https://uk.reuters.com/article/us-newcrest-output/australias-newcrest-mining-to-raise-655-million-quarterly-gold-output-drops-idUKKBN22C001

So of course, one way would be to sell their SOLG stake, but at 20p? Nuts! There are at least nine prospective buyers of SOLG, especially Barrick and BHP, because existing mines are depleting fast and the majors have to look to the 'minors' to restock:

https://stockhouse.com/opinion/independent-reports/2020/06/24/barrick-franco-nevada-yamana-gold-price-record-high-now-second-row-getting

So if Mr Biswas does want to sell his SOLG holding and get the best price, thereby raising the resources he needs to develop e.g. Havieron, the simplest way is to make a bid for SOLG. This would have to be a minimum of 60p because otherwise it would not be taken seriously, but he must know that it would trigger immediate counter bids at higher prices and he could sell to the highest or most likely winner...

Now some people have described SOLG's action in not letting Newcrest or BHP into the placing as a serious mistake...what...?

Why miss the opportunity to reduce their percentage holding, thereby reducing the size of a prospective 'concert party' holding; also NM was not only able to feather his own nest and reward people like ourselves, but also to bring new investors on board.

Newcrest don't have a right to a Board seat with less than 14% and surely their main reason for being there was 'block caving' expertise, but also NM maybe never saw them as a threat.

TBC....

well done...FCA, FCT, FCIB...and I don't day trade either...

And that was the capital gain alone, without the £300m plus income stream...

Jerry...it was a Gilts and CDs fund...

Oh dear ssmith...you just made yourself look very stupid...

The source of all the quotes was official RNSs from Solgold...you obviously didn't read them...

If you spent more time on here reading objective opinions you would also know that I qualified as a Member of the London Stock Exchange and broker equities, as well as Gilts; I also managed a £4.5 billion fund and in one year made a profit of £165 million...

I have been happily retired for 10 years now and have reinvested my experience to turn £100,000 into £520,000 so far, bjuyinhg myself an AMG GT from my SOLG profits to date...so far...and since Jan 1st my portfolio is up 45% and my wife's 40%...together we hold almost 1 million SOLG again (having trade out 400,000 at 40p and bought back in at an average sub 20p...)

Now I apologise if anyone finds my post immodest, but I am merely wishing to repudiate your insulting and ignorant post.

ATB Rouge....

I hold 15 shares, of which all but two are in gold, silver, copper...

That's my core strategy which makes it easier to manage...but since Jan 1 I'm up 45% overall...my only regret was not going back into GGP but I'm in HUM instead...

My God ssmith... where do you get your information...

You wrote;

'More than likely these are the brokers who supported the deal and bought the stock to help stabilise the fundraise. This can easily carry on for weeks as I doubt this was actually that oversubscribed..."

Not oversubscribed...

Try reading these clips from four separate RNSs...sheesh!

“Minimum £16 million (approximately US$20 million) to be raised by way of a Placing at the Placing Price...”

“In addition to the Placing there will be an offer of up EUR8 million at the Placing Price (the "PrimaryBid Offer") for retail and other investors to participate....”

“A total of 121,359,680 New Ordinary Shares in the capital of the Company ("Placing Shares") have been placed with new and existing investors...”

“In addition, retail investors have subscribed in an offer made by the Company via the PrimaryBid platform for 4,813,527 new ordinary shares in the capital of the Company...”

“The Placing and the Subscription raised gross proceeds of approximately £26.1 million for the Company (approximately US$32.6 million) (before expenses)....”

“In addition to the Placing, Subscription and the Retail Offer, the Company remains in dialogue with a potential investor for an additional subscription of up to US$5 million at the Placing Price....”

“The Board of Directors of SolGold (LSE & TSX:SOLG) is pleased to announce further to the results of the Placing, Subscriptions and Public Offer on 5 June 2020, certain institutional and private investors have irrevocably agreed to subscribe for a further 21,440,186 New Ordinary Shares at the Placing Price...”

Surely that has to be Cornerstone again...spoilers...

I have no reason to doubt NM's intention (although at his age and having feathered his nest with SOLG and DGR he could enjoy a lucrative retirement in OZ...)

However, all those saying this will go to production and even those expecting the financing, are ignoring the point that a bid doesn't have to be successful, and SOLG may go to production, but...

As soon as a bid approach is made (the company has received an approach which may lead to a bid), or even if it is a hostile bid, the share price will simply rocket because, markets always speculate on a higher price than the first bid and even with an 'agreed' bid here it would not preclude a hostile higher bid if somebody was so minded...

The fact is that gold and copper miners have to have resources to maintain their raison d'être and steady income streams to satisfy their shareholders...we all know the Chinese are aggressively acquisitive and that Barrick, BHP and several others desperately need new ore resources...

So hold tight...I would love to believe we will get to October intact, but this is a game of 'chicken' for would be bidders...(and anybody who has not yet got their full target holding in SOLG..)

AIMHO as usual...

Two strong bullish views on copper...set to break the 30 month downtrend...?

https://seekingalpha.com/article/4354759-jjctf-curb-your-bearishness?utm_medium=email&utm_source=seeking_alpha&mail_subject=jjctf-jjctf-curb-your-bearishness&utm_campaign=rta-stock-article&utm_content=link-2

https://seekingalpha.com/news/3584744-copper-climbs-to-fifth-straight-weekly-gain-bofa-sees-rising-to-6500-ton?utm_medium=email&utm_source=seeking_alpha&mail_subject=jjctf-copper-climbs-to-fifth-straight-weekly-gain-bofa-sees-rising-to-6-500-ton&utm_campaign=rta-stock-news&utm_content=link-3

Hi Phat

I have been in FRES but I'm concerned about their depleting asset...however, they are developing a new resource as Juanicipio with MAG Silver, which I think is the better bet (similar to SOLG...the best is yet to come...)

I hold HOC but expect to make serious money in MAG...

Not a recommendation but have a look...Eric Sprott recently took an entire $60 million placing and he is a major gold/silver bug...

https://www.globenewswire.com/news-release/2020/04/27/2022280/0/en/MAG-Silver-Announces-a-60-Million-Private-Placement.html

Here are some rock solid, credible recommendations for it...

https://www.streetwisereports.com/pub/co/mag-tsx

AIMHO as usual...DYOR and good luck...

PS I agree...silver will outperform gold...while the G/S ratio hit §125 and is back to 98.5 it recently got to 96 and I expect it to fall to 65 or less as silver revisits $50 an ounce...